EQUINOR ASA-SPON ADR (EQNR) Stock Fundamental Analysis
NYSE:EQNR - New York Stock Exchange, Inc. - US29446M1027 - ADR - Currency: USD
Overall EQNR gets a fundamental rating of 5 out of 10. We evaluated EQNR against 211 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and the financial health of EQNR get a neutral evaluation. Nothing too spectacular is happening here. EQNR is cheap, but on the other hand it scores bad on growth. These ratings would make EQNR suitable for value investing!
1. Profitability
1.1 Basic Checks
EQNR had positive earnings in the past year.
In the past year EQNR had a positive cash flow from operations.
EQNR had positive earnings in 4 of the past 5 years.
In the past 5 years EQNR always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.72%, EQNR is in the better half of the industry, outperforming 60.29% of the companies in the same industry.
The Return On Equity of EQNR (20.80%) is better than 75.98% of its industry peers.
EQNR has a Return On Invested Capital of 25.44%. This is amongst the best in the industry. EQNR outperforms 96.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.72% | ||
| ROE | 20.8% | ||
| ROIC | 25.44% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 8.59%, EQNR is in line with its industry, outperforming 42.65% of the companies in the same industry.
In the last couple of years the Profit Margin of EQNR has grown nicely.
Looking at the Operating Margin, with a value of 30.19%, EQNR is in the better half of the industry, outperforming 64.22% of the companies in the same industry.
In the last couple of years the Operating Margin of EQNR has grown nicely.
With a Gross Margin value of 51.18%, EQNR perfoms like the industry average, outperforming 55.88% of the companies in the same industry.
In the last couple of years the Gross Margin of EQNR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.19% | ||
| PM (TTM) | 8.59% | ||
| GM | 51.18% |
OM growth 3Y-8.38%
OM growth 5Y5.28%
PM growth 3Y-3.8%
PM growth 5Y23.92%
GM growth 3Y-5.36%
GM growth 5Y-0.73%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so EQNR is creating value.
EQNR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
The Debt to FCF ratio of EQNR is 3.79, which is a good value as it means it would take EQNR, 3.79 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.79, EQNR is in the better half of the industry, outperforming 65.20% of the companies in the same industry.
A Debt/Equity ratio of 0.51 indicates that EQNR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.51, EQNR is in line with its industry, outperforming 44.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.79 | ||
| Altman-Z | N/A |
ROIC/WACC3.4
WACC7.48%
2.3 Liquidity
A Current Ratio of 1.31 indicates that EQNR should not have too much problems paying its short term obligations.
EQNR has a Current ratio (1.31) which is comparable to the rest of the industry.
A Quick Ratio of 1.20 indicates that EQNR should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.20, EQNR is doing good in the industry, outperforming 60.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The earnings per share for EQNR have decreased by -5.57% in the last year.
Measured over the past years, EQNR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.82% on average per year.
The Revenue has decreased by -4.07% in the past year.
EQNR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.24% yearly.
EPS 1Y (TTM)-5.57%
EPS 3Y-2.27%
EPS 5Y16.82%
EPS Q2Q%0%
Revenue 1Y (TTM)-4.07%
Revenue growth 3Y4.92%
Revenue growth 5Y10.24%
Sales Q2Q%-2.91%
3.2 Future
Based on estimates for the next years, EQNR will show a small growth in Earnings Per Share. The EPS will grow by 4.96% on average per year.
Based on estimates for the next years, EQNR will show a decrease in Revenue. The Revenue will decrease by -4.83% on average per year.
EPS Next Y0.79%
EPS Next 2Y-1.76%
EPS Next 3Y-5.27%
EPS Next 5Y4.96%
Revenue Next Year-6.43%
Revenue Next 2Y-3.96%
Revenue Next 3Y-5.02%
Revenue Next 5Y-4.83%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 7.22, the valuation of EQNR can be described as very cheap.
EQNR's Price/Earnings ratio is a bit cheaper when compared to the industry. EQNR is cheaper than 78.92% of the companies in the same industry.
EQNR is valuated cheaply when we compare the Price/Earnings ratio to 30.30, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 7.17, which indicates a rather cheap valuation of EQNR.
79.90% of the companies in the same industry are more expensive than EQNR, based on the Price/Forward Earnings ratio.
EQNR is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.06, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.22 | ||
| Fwd PE | 7.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EQNR is valued cheaply inside the industry as 98.53% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, EQNR is valued a bit cheaper than 76.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.06 | ||
| EV/EBITDA | 1.35 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of EQNR may justify a higher PE ratio.
EQNR's earnings are expected to decrease with -5.27% in the coming years. This may justify a cheaper valuation.
PEG (NY)9.11
PEG (5Y)0.43
EPS Next 2Y-1.76%
EPS Next 3Y-5.27%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.19%, EQNR is a good candidate for dividend investing.
EQNR's Dividend Yield is a higher than the industry average which is at 6.74.
Compared to an average S&P500 Dividend Yield of 2.29, EQNR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.19% |
5.2 History
On average, the dividend of EQNR grows each year by 34.90%, which is quite nice.
EQNR has been paying a dividend for at least 10 years, so it has a reliable track record.
EQNR has decreased its dividend in the last 3 years.
Dividend Growth(5Y)34.9%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
EQNR pays out 97.40% of its income as dividend. This is not a sustainable payout ratio.
The dividend of EQNR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP97.4%
EPS Next 2Y-1.76%
EPS Next 3Y-5.27%
23.48
+0.41 (+1.78%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners18.83%
Inst Owner Change-3.63%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap63.92B
Analysts67.43
Price Target26.94 (14.74%)
Short Float %1.59%
Short Ratio3.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.19% |
Yearly Dividend3.6
Dividend Growth(5Y)34.9%
DP97.4%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.18%
Min EPS beat(2)-12.26%
Max EPS beat(2)3.9%
EPS beat(4)3
Avg EPS beat(4)7.93%
Min EPS beat(4)-12.26%
Max EPS beat(4)26%
EPS beat(8)5
Avg EPS beat(8)2.76%
EPS beat(12)7
Avg EPS beat(12)4.39%
EPS beat(16)10
Avg EPS beat(16)5.07%
Revenue beat(2)2
Avg Revenue beat(2)4.06%
Min Revenue beat(2)3.61%
Max Revenue beat(2)4.52%
Revenue beat(4)3
Avg Revenue beat(4)-0.02%
Min Revenue beat(4)-10.13%
Max Revenue beat(4)4.52%
Revenue beat(8)4
Avg Revenue beat(8)-3.08%
Revenue beat(12)7
Avg Revenue beat(12)-2.93%
Revenue beat(16)9
Avg Revenue beat(16)-2.6%
PT rev (1m)1.86%
PT rev (3m)-1.85%
EPS NQ rev (1m)-0.99%
EPS NQ rev (3m)-5.21%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)-2.49%
Revenue NQ rev (1m)2.13%
Revenue NQ rev (3m)-19.72%
Revenue NY rev (1m)0.73%
Revenue NY rev (3m)2.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.22 | ||
| Fwd PE | 7.17 | ||
| P/S | 0.62 | ||
| P/FCF | 8.06 | ||
| P/OCF | 3.18 | ||
| P/B | 1.51 | ||
| P/tB | 1.74 | ||
| EV/EBITDA | 1.35 |
EPS(TTM)3.25
EY13.84%
EPS(NY)3.27
Fwd EY13.94%
FCF(TTM)2.91
FCFY12.41%
OCF(TTM)7.39
OCFY31.46%
SpS37.66
BVpS15.55
TBVpS13.48
PEG (NY)9.11
PEG (5Y)0.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.72% | ||
| ROE | 20.8% | ||
| ROCE | 32.2% | ||
| ROIC | 25.44% | ||
| ROICexc | 33.65% | ||
| ROICexgc | 36.48% | ||
| OM | 30.19% | ||
| PM (TTM) | 8.59% | ||
| GM | 51.18% | ||
| FCFM | 7.74% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-8.38%
OM growth 5Y5.28%
PM growth 3Y-3.8%
PM growth 5Y23.92%
GM growth 3Y-5.36%
GM growth 5Y-0.73%
F-Score6
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.79 | ||
| Debt/EBITDA | 0.53 | ||
| Cap/Depr | 122.93% | ||
| Cap/Sales | 11.88% | ||
| Interest Coverage | 34.73 | ||
| Cash Conversion | 49.23% | ||
| Profit Quality | 90.08% | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | N/A |
F-Score6
WACC7.48%
ROIC/WACC3.4
Cap/Depr(3y)119.04%
Cap/Depr(5y)96.27%
Cap/Sales(3y)9.19%
Cap/Sales(5y)11.03%
Profit Quality(3y)100.41%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-5.57%
EPS 3Y-2.27%
EPS 5Y16.82%
EPS Q2Q%0%
EPS Next Y0.79%
EPS Next 2Y-1.76%
EPS Next 3Y-5.27%
EPS Next 5Y4.96%
Revenue 1Y (TTM)-4.07%
Revenue growth 3Y4.92%
Revenue growth 5Y10.24%
Sales Q2Q%-2.91%
Revenue Next Year-6.43%
Revenue Next 2Y-3.96%
Revenue Next 3Y-5.02%
Revenue Next 5Y-4.83%
EBIT growth 1Y-16.56%
EBIT growth 3Y-3.87%
EBIT growth 5Y16.06%
EBIT Next Year28.79%
EBIT Next 3Y4.24%
EBIT Next 5Y4.76%
FCF growth 1Y-43.84%
FCF growth 3Y-27.45%
FCF growth 5Y17.48%
OCF growth 1Y-18.59%
OCF growth 3Y-11.3%
OCF growth 5Y7.9%